impact of government policies and investment agreements on fdi ...

country. But what comes out clearly from the analysis is that <strong>policies</strong> with respect to cost
factors, e.g., lower tariff rates, tax concessions, tax holidays etc. play an important role in
attracting FDI from the developing countries but these <strong>policies</strong> may not attract FDI from
developed countries. What matters more to FDI coming from developed countries are the
<strong>policies</strong> that facilitate business <strong>of</strong> foreign firms in the host country.
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